However, one of the challenges both countries will face is on trade. As EU is a single market and UK is a member, so there are no taxation forced on imports and exports for the UK till now but after leaving EU, one of the complication that UK will face is the trade taxation. EU is the biggest business partner of UK, so the benefits they both have from one another through trade deals will be jeopardize. UK will also face the challenge which includes the negotiating power with the rest of the members of EU. Hence, the supporters to leave EU says that these advantages will be compensated through the establishment of UK own trading agreements. Furthermore, some of the options proposed by the campaigners stated that as UK is leaving the political aspects of the EU so it would not be bound by the EU laws on justice, agriculture and home affairs but yet could be the member of the single market.

Adding on, the economic effects of leaving the EU for UK are discussed in facts and moulded in paragraphs for better understanding.
Currently, the advantage lies within UK as it has a free trade system with all the 28 countries who are EU members. The percentage of trading accounted with the EU was 44.6% of the UK exports and similarly 53.2% of the UK imports of goods and services. If UK leaves EU it will result in 1.3% fall in average UK income and through a pessimistic approach with increase in trading cost, Brexit will lower incomes by 2.6% (Swati, 2016). If UK will leave the EU then it will also loose the negotiation on trade deals with these countries which could result in effecting the UK export industry. From another point of view it may be able to lower EU external tariffs as the EU imposes some significant external tariffs on goods such as agriculture which results in increasing the price of some imports of food products. If the UK leaves the EU it might be able to arrange better trade deals with the other countries, despite to some emerging economies such as China and India which are already having impact on the EU world trade graph.

Secondly, as being a member of EU for so long, UK has made lot of investments in EU and earns revenue from them. Similarly many European companies have invested in UK but due to Brexit these investments may become less charming or appealing as it will force the foreign investors to go back to EU. For example, BMW Company has already warned their workers for the potential job losses in case Brexit happens. The exchange of assets investment between UK and EU are around 89.6% but the uncertainty about Brexit has resulted into 9.9% depreciation of pound as compared to dollars. Whereas, sterling has risen by 3.6% (Oxford,2016). If only both can shake hands on some mutual successful post leaving treaties, it might then can save the investments on both sides. Another alternative solution for UK is to make a European Economic Area (EEA).

Thirdly, another issue which UK faces is the exchange of workers between EU and UK. It has generated notable stress on areas such as housing and infrastructure. Migrants who come to work from EU also contributes in the economy by filling out labour shortage gaps in areas such as nursing and teaching. So if the UK leave the EU it might lead to the immense shortage of labours as in 2016 there have been some firms who are outlining the labour shortages, especially in areas such as agriculture and construction. If UK leaves, they will gain the advantage of restricting net immigrations but on the other hand it will be difficult for UK nationals to find work abroad. According to the record, there are 2 million British nationals who are currently working in EU. Similarly